Article 2 of the Saudi Municipal Licensing Law
المادة 2 من نظام إجراءات التراخيص البلدية
No activity may be carried on until a municipal license and a license from the competent government authority have been obtained, as each activity requires and under the laws and regulations.
Official text (Arabic)
This article has not been amended since the law was issued.
لا تجوز ممارسة أي نشاط إلا بعد الحصول على ترخيصٍ بلدي وترخيصٍ من الجهة الحكومية المختصة، وذلك بحسب حال كل نشاط، ووفقاً للأنظمة واللوائح.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 2 explained in plain English
This article sets the basic rule of the Law: no activity may be carried on before the necessary license has been obtained.
The two licenses the article mentions are:
- The municipal license: under Article 1, this is written approval from the Ministry to build or open a shop for any activity at a specific site.
- The license of the competent government authority: written approval to carry on the activity, issued by the authority that supervises that activity under its own laws.
The phrase "as each activity requires" means that the licenses needed differ from one activity to another, under the laws and regulations that govern it. The article does not itself state which activity needs which license; it refers that question to the laws and regulations.
This rule is linked to Article 3, which makes issuing, amending, renewing, canceling and suspending municipal licenses the responsibility of the Ministry. Anyone who wants to carry on an activity should therefore check in advance which licenses their activity requires, and should not start operating before obtaining them. If the classification of the activity is unclear or it falls under more than one authority, it is advisable to consult a lawyer specializing in administrative matters and commercial licensing.
Practical example
Khalid wanted to open a cafe in a neighborhood of Riyadh, so he rented the shop and fitted it out. Under this article he may not open the cafe to customers before obtaining the municipal license for the shop and any license required by the authority that supervises this type of activity under its own laws.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 2 of the Saudi Municipal Licensing Law
Is a commercial registration enough to open a shop?
The article requires a municipal license and a license from the competent government authority, as each activity requires and under the laws and regulations, so the activity may not be carried on before the required licenses have been obtained.
Does every activity need both licenses?
The article states that this depends on each activity and on the laws and regulations, so what is required differs from one activity to another.
Who issues the municipal license?
The Ministry, which under Article 1 includes the Ministry of Municipal and Rural Affairs, the municipalities (amanahs), or the municipalities, as the case may be.
More articles on Municipal License and Activity License
- Article 1
The article defines the key terms of the Law, including the Ministry, the competent government entity, the municipal license and the competent government entity's license.
يكون للألفاظ والعبارات الآتية المعاني المبينة أمام كل منها، ما لم يقتضِ السياق خلاف ذلك: النظام: نظام إجراءات التراخيص البلدية. اللائحة: اللائحة التنفيذية للنظا
- Article 3
The Ministry is responsible for issuing, amending, renewing, canceling and suspending municipal licenses for activities of all kinds.
تختص الوزارة بإصدار التراخيص البلدية للأنشطة بجميع أنواعها، وتعديلها، وتجديدها، وإلغائها، وإيقافها.
- Article 4
The competent government authority sets the conditions and requirements for the activity it supervises, and issues, amends, renews and cancels licenses to carry it on.
تتولى الجهة الحكومية المختصة وضع اشتراطات ممارسة النشاط الداخل تحت إشرافها ومتطلباته وإصدار تراخيص ممارسته، وتعديلها، وتجديدها، وإلغاءها.
- Article 7
The article refers to the Implementing Regulations the question of who may issue, suspend, cancel, amend or decline to renew a municipal license, and to the competent authority's regulations the same question for an activity license.
أ - تحدد اللائحة صلاحية من يملك إصدار الترخيص البلدي أو إيقافه أو إلغاءه أو عدم تجديده أو تعديله وفقاً لما تقضي به الأنظمة واللوائح والتعليمات ذات الصلة. ب - تح
- Article 14
The Minister issues the Implementing Regulations of the Law within 90 days of its publication, setting out the conditions, controls and forms of municipal licenses.
يصدر الوزير اللائحة خلال تسعين يوماً من تاريخ نشر النظام، وتحدد فيها شروط التراخيص البلدية وضوابطها ونماذجها.
- Article 15
The Law repeals everything that conflicts with it and takes effect 90 days after its publication in the Official Gazette.
يلغي هذا النظام كل ما يتعارض معه، ويعمل به بعد تسعين يوماً من تاريخ نشره في الجريدة الرسمية.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.